Monday, September 15, 2025 - Muhammad Sanusi II, Emir of Kano and former governor of the Central Bank of Nigeria (CBN), says the removal of the petrol subsidy prevented Nigeria from sliding into bankruptcy.
Sanusi made the remarks on Saturday at the second edition of
the Kano International Poetry Festival (KAPFEST), organised by the Poetic
Wednesdays Initiative.
The monarch described the subsidy regime as unsustainable,
arguing that it placed the burden of global oil price fluctuations, exchange
rate volatility, transportation costs, and refining expenses squarely on
government finances.
“Subsidy was simply the government saying, ‘If the price of
petrol is N100, Nigerians will pay N70 and I will pay N30,’” he said.
“But beyond that, the government also placed a hedge, fixing
petrol at N65 per litre irrespective of whether the international price of oil
was $10 or $100 per barrel. Who paid the difference? The government. And this
was always going to bankrupt Nigeria.”
Sanusi criticised successive administrations for failing to
rehabilitate domestic refineries, arguing that subsidies only enriched foreign
refineries while exporting jobs.
“If you look at the billions and billions spent on subsidy
and imagine that money invested in refineries, Nigeria would not be where it is
today,” he said.
“I have nothing against subsidies if you are subsidising
production. My objection has always been subsidy on consumption.”
The emir recalled that as CBN governor in 2012, he had
warned that the subsidy system was akin to “a man running towards a ditch”.
“Government revenue could no longer carry the subsidy
burden. At some point, we began borrowing to pay the subsidy, then borrowing to
service the debt. It became unsustainable. That is exactly what I said would
happen, and this is where we are,” he said.
Sanusi added that the removal of the subsidy should be
viewed not only as an economic reform but also as an opportunity to rebuild a
stronger and more self-reliant Nigeria.
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